KEY IMPLICATIONS FOR BUSINESSES
On 4 June 2026, the Ministry of Health (“MOH”) issued Online Public Consultation No. 2/2026¹ proposing several amendments to the Food Regulations 1985. One of the key proposals is the introduction of a new Regulation 18BA in Food Regulations 1985, which would establish a mandatory sugar content grading labelling regime for packaged beverages.
WHICH BEVERAGES WOULD BE AFFECTED?
If implemented, the proposed requirement would apply to all packaged beverages that are:
- ready-to-drink; or
- in powder, concentrate, base or pre-mixed form, whether ready for consumption or requiring preparation.
This proposed requirement would not apply to alcoholic beverages, natural mineral water, packaged drinking water, or foods regulated under Regulations 388 to 393A of the Food Regulations 1985, including infant formula, follow-up formula, and other special dietary foods.
HOW WOULD PACKAGED BEVERAGES BE GRADED?
The proposed grading system classifies packaged beverages into four categories based on their sugar content per 100 ml:
|
Grade |
Sugar Content (per 100 ml) |
|
A |
≤ 1.0 g |
|
B |
> 1.0 g to ≤ 5.0 g |
|
C |
> 5.0 g to ≤ 10.0 g |
|
D |
> 10.0 g |
For the purpose of determining the applicable grade, naturally present or added lactose and galactose are excluded, provided that such sugars are disclosed in the nutrition labelling.
Notably, a beverage that would otherwise qualify for Grade A would instead be classified as Grade B if it contains a sweetening substance other than sugar.
The proposed grading label must be prominently displayed on the principal display panel of the beverage package. The label must also comply with the prescribed format, layout and colour specifications:
COMPARISON WITH SINGAPORE’S NUTRI-GRADE REGIME
Malaysia’s proposed regime shares similarities to Singapore’s Nutri-Grade system, which also adopts a front-of-pack grading mechanism for beverages. Both initiatives are intended to assist consumers in making more informed purchasing decisions and to encourage healthier consumption patterns.
There are, however, several key differences. Firstly, Malaysia’s proposed grading system is based on sugar content, whereas Singapore’s Nutri-Grade system classifies beverages based on both sugar and saturated fat content. Secondly, in Singapore Nutri-Grade beverages graded “C” or “D” are required to label the Nutri-Grade mark, while labelling of the Nutri-Grade mark is optional for Nutri-Grade beverages graded “A” or “B”. Malaysia’s current proposal, by contrast, appears to require sugar content grading labelling for all packaged beverages, regardless of whether they are graded A, B, C or D. Thirdly, Grade D beverages are subject to advertising restrictions, a feature that is not included in Malaysia’s current proposal.
WHAT SHOULD BUSINESSES DO?
The proposed sugar content grading regime has attracted considerable attention, but it has not yet been implemented. Nevertheless, food and beverage manufacturers, importers and distributors should monitor further developments closely. If the proposal is implemented in its current form, affected businesses may need to:
- update product packaging and labels to comply with the prescribed format and colour specifications;
- review whether products contain non-sugar sweeteners which would result in reclassification of the product’s sugar grade; and
- consider whether product reformulation may be commercially desirable.
The proposal may therefore have implications extending beyond regulatory compliance. For some businesses, the assigned sugar grade could also affect product positioning, consumer perception and future product formulation.
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¹ https://hq.moh.gov.my/fsq/seranta-awam-atas-talian-2026
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This article was written by Low Rui Thong (Associate) with assistance from Sonia Lim (Intern) from Donovan & Ho’s corporate practice.
Our corporate practice group advises on corporate acquisitions, restructuring exercises, joint venture arrangements, shareholder agreements, employee share options and franchise businesses, Malaysia start-up founders and can assist with venture capital funds in Seed, Series A & B funding rounds. Feel free to contact us if you have any queries.
